The Pros and Cons of Investing in Gold

Could gold add some sparkle to your portfolio this Christmas? We look at the pros and cons of investing in the precious metal 

Emma Rapaport 28 June, 2019 | 2:47PM

Golden eggs

Gold had a strong run in 2019, reaching a six-year high in the summer as factors including a weaker dollar, US-Iran tension, global growth fears and a U-turn from the world’s central banks all worked in the precious metal’s favour.

The price of bullion jumped above $1,300 per ounce in January, breaking through $1,500 in July, where it has largely stayed steady since at levels last seen in 2013. The surge in the gold price has boosted the returns of gold-focused funds and ETFs, which have largely underperformed the wider stock market in recent years.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BlackRock Gold and General D Acc1,238.00 GBP0.00
iShares Gold Producers ETF USD Acc13.56 USD1.97
iShares Physical Gold ETC32.24 USD0.47

About Author

Emma Rapaport  is a reporter for Morningstar.com.au

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